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Congress·In Committee·about 2 months ago

Congress targets third-party lawsuit funding with new disclosure rules for who profits from civil cases

Also known as: Protecting TPLF From Abuse Act

Legislative Progress

✓ Filed
Review
House
Senate
President

Key Points

  • People in civil lawsuits would have to tell the court and the other side who will get paid if the case wins or settles, if that payment depends on the outcome.
  • They would also have to give the judge the funding agreement to review privately, then share it with the other side, with protections the judge can order (like redacting privileged info).
  • The bill tries to protect privacy for donors and members of groups behind the funding, unless those donors or members also have a right to get paid from the case.
  • Some arrangements would not trigger disclosure, like simple loan repayment, limited-interest loans, paying back attorney fees already paid, or repaying a grant.
  • These rules would apply not just to new cases, but also to civil lawsuits already in progress when the law takes effect.
Criminal JusticeConsumer Protection

Milestones

2 milestones2 actions
Jan 12, 2026House

Referred to the House Committee on the Judiciary.

Jan 12, 2026

Introduced in House

What Happens Next

Projected impacts based on AI analysis

On the date the Act is enacted (signed into law)

New disclosure rule starts for federal civil cases that are already pending and for new cases

If you’re already in a federal civil lawsuit (or file one later), covered funding arrangements may need to be disclosed once the law takes effect

Within 10 days after signing a covered agreement, or at initial case disclosures, whichever is later

Parties must disclose third-party payout beneficiaries and submit agreements to the judge for private review

If you sign a covered funding deal, you generally have up to 10 days to disclose, or you must do it during early-case disclosures or by the judge’s deadline

Soon after the judge completes private review of the agreement

Other side gets access to inspect and copy funding documents, with court-ordered limits

Expect disputes about redactions and privacy; you may have to negotiate or ask the judge for a protective order before sharing details

Any time after disclosure when a material change is learned

Ongoing duty to correct disclosures when information changes

If the funding deal changes, a new beneficiary is added, or earlier info was wrong, you may have to update the court and the other side

Related News

5 articles
Reuters·about 2 months ago

Another litigation funding bill stalls in Congress

Reuters reports the House Judiciary Committee debated H.R. 7015 (Protecting Third Party Litigation Funding From Abuse Act) but ended without a vote, amid concerns it was overly broad and could affect access to justice.

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Insurance Journal·about 2 months ago

APCIA Backs Federal Bill to Require Litigation Funding Disclosure

Covers insurer trade group APCIA’s support for H.R. 7015 and summarizes the bill’s court disclosure requirements for parties and funding arrangements tied to case outcomes.

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Insurance Business·about 2 months ago

APCIA backs federal bill requiring disclosure of third-party litigation funding arrangements

Reports on APCIA’s backing of the Protecting Third Party Litigation Funding From Abuse Act and describes proposed disclosure of funding arrangements in civil litigation.

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Source Information

Document Type

Congressional Bill

Official Title

Protecting TPLF From Abuse Act

Bill NumberHR 7015
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on the Judiciary.

Sponsor

Cosponsors

(2)
R: 2

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.